A Study on Employee Relations. TY BMS PREFACE It is a matter of honour for me to present my findings on Employee Relations.

This report is an earnest effort to study Employee Relations as an important tool of Human Resource Management.

I got an opportunity to work at GPI for my summers which initiated the idea of the project. I started with reading HRM by K. Ashwathapa which gave me a foundation to HUMAN RESOURCES as a function. My further endeavors for the information regarding policies of other companies gave me a brief knowledge about Employee Relations and I formed a questionnaire for the companies I was going to research on. Some articles that caught my attention while doing research are included in my observations. To add spice to this dish, I have also scaled the practices of Employee Relations in other countries.

Since I was working at GPI, gathering information was easier compared to others. I have found some interesting insights regarding Employee Relations which are mentioned in the report.

So, with due respect to my patient readers, I welcome you to the unremitting process of Employee Relations.

STUDY OF EMPLOYEE RELATIONS

Sr. no. I 1 2 2.1 2.2 3 3.1 3.1.1 3.1.2

TOPIC Executive summary Human Resources Management EMPLOYEE RELATIONS Introduction Overview Employee Relations in brief Downward Relation (employer to employees) Training and induction Benefits Incentives and allowance Monetary benefits Medical facilities to staff

PAGE NO. 3 5 8 8 9 14 11 11

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3.1.3 3.1.4 3.1.5 3.1.6 3.1.7 3.1.8 3.2

Safety Career Development Recreation facilities and stress management Collective problem solving.(bargaining) Involvement and engagement Rewards and recognition Upward communication (employee to employer) 2 13 13 13 14 15 15

3.2.1 3.2.2 3.3 3.3.1 3.3.2 4 5 6 7 8 9 10 11 12

Feedback Performance appraisal Horizontal Relation (amongst Employees) Annual events and magazines Welfare activities Advantages of maintaining Good Employee Relations Role and scope of Human resources. GODFREY PHILLIPS INDIA LTD PARLE INDIA LIMITED TAJ LANDS END Comparative study Worldwide Employee Relations Personal observation. Conclusion

15 15 16 16 16 17 19 20 31 39 47 56 58 61

I. EXECUTIVE SUMMARY

The objective of the report is to have an overview of HRM and Employee Relations at GODFREY PHILLIPS INDIA LTD. (Andheri), TAJ LANDS END (Bandra) and at PARLE PRODUCTS PRIVATE LTD. (Vile Parle). The objective was to analyze Employee Relations at a plant factory and in the service sector.

The Human Resources Management (HRM) function includes a variety of activities, and key among them is maintaining amicable relations with the workforce. Both the sectors are such where employees become the crux of all operations. For the plant (factory), it is the employee who works on the machine. Even at PARLE, where most of the operations are automated, workers need to operate the machines. At the hospitality sector, it is the employee who communicates with the guest. The behaviour of the employee gives inkling about the company, the employee is the company for the buyer, and thus it is very important to maintain cordial relations with the workforce. The goal of Employee Relations is to end up with a productive and motivated employee that will help effectiveness. Following the introduction to Employee Relations is a brief overview of how Employee Relations has evolved as an activity. Following that in chapter 6 are the advantages of maintaining good employee relations.

The importance of HR department, HR mission and the activities of the department for Employee Relations are detailed. According to me, HR department gets concerned in 3 types of relations. First the employer to the employee, second employees to employer and third is amongst the employees. There is comprehensive information on all 3 and how it benefits the company.

The report gives a brief introduction about the companies. It has knowledge about the history of the company, vision, core values and the Corporate Social Responsibility activities initiated by the company. Following this is the organization structure.

In addition, I have also studied the practices at other countries like Japan, UK and USA for Employee Relations. This includes the different procedures for Employee Relations, their trade unions and the laws regulating the same.

The report ends with my personal observations about each company and some articles that caught my attention while research. Conclusion about employee relations and its link to OCB ends my report

In order to achieve the above mentioned objective and finish the study to perfection, the methodology used was a balance of primary and secondary sources. Primary sources were the personal visits to the companies and secondary was the information collected from websites. To facilitate this, I started with reading a few books on Employee Relations and human resources to understand the basic concept of Employee Relations. I also browsed the net to find more detailed information on specific topics. I practically saw the HR department at GPI work and Later, I formed a questionnaire on various practices to understand the functioning of HR department at other companies. I chose this sample of companies on the basis of their scale of operations, reputation and quick accessibility.

1. HUMAN RESOURCES MANAGEMENT Human Resource Management is an integral part of management. It helps the management in taking a strategic view of a very important resource i.e. Human Resource. It helps management in identifying key skill sets, knowledge, values required in the employee and the rewards that are needed to be given to the employees so that the organisation goals are fulfilled. Also like other

management functions, it has to ensure that these resources are available at an optimal cost. It has to look into various training and development activities to ensure this. This is a key area for Human Resource Management as it shows their contribution in terms of money. The money here would be the opportunity cost incurred due to appointing of new employees instead of developing current employees for the task in hand.

FUNCTIONS From recruiting to orienting new employees, from writing job descriptions to tracking vacation and sick leave, and from instituting and monitoring policies to monitoring benefits, there has been a need for an HR generalist to assist senior management in both establishing a "structure" to holding down costs of administration.

1. INCEPTION FUNCTION

Strategic Human Resource Planning : is understood as the process of forecasting

an organizations future demand for, and supply of, the right type of people in the right number. Recruitment and selection : this aims at obtaining applications from a large

number of opportunities by providing adequate information about the job. Employee orientation : is understood as the allocation of people to jobs. It is the

assignment or re-assignment of an employee to a new or different job

2. TRAINING AND DEVELOPMENT Employee Training : It is an attempt to improve current or future employee performance by increasing an employees ability to perform through learning, usually by changing the employees attitude or increasing his or her skills and knowledge. Employee development : focuses not on the current job but on the future position within the same organization requiring additional competencies Organizational development : aimed at changing the values and attitudes of the employees together with the organization structure, and make the employee more adaptive to the external influences affecting it. Career development : process to help workers manage their careers effectively. Here the employees are assisted in advancing their work lives.

3. MOTIVATIONAL FUNCTION Motivation is a multi faceted process. An employees performance is function of 2 factors ability to work and willingness to work. The first is accomplished by training and second factor calls for motivational practices. It involves various financial and non-financial incentives that empower employee to practice energizing behaviour.

4. MAINTAINENCE FUNCTION The most important function as it helps retaining productive employees. This function expects managers to go beyond the compensation program and ensure a safe and healthy working environment with timely employee assistance program.

5. EMPLOYEMENT FUNCTION Main objective is to promote the activities related to the inception function. It embarks on the process of Recruiting new employees Correctly advertising the vacancies

6. COMPENSATION AND BENEFITS FUNCTION This function is concerned with an employee receives in return for his or her contribution to the organization. It means paying the employee and administering the benefit package. It includes Helping employees prepare for retirement Identify various pay-out options Perquisites of the employees

7. EMPLOYEE RELATIONS FUNCTION It is concerned with the systems, rules and procedures used by unions and employers to determine the reward for effort and other conditions of employment, to protect the interests of the employed and their employers, and to regulate the ways in which employers treat their employees.

It helps ensure that the HR policy and procedures are enforced properly. It helps a wrong employee voice his opinion and organising company outings, company sports and recreational facilities

8. PERSONNEL RESEARCH AND AUDIT FUNCTION This is the latest addition to the list. It includes Recruitment, selection development and utilization of HR Analysis and update of the HR policies and procedures Collecting and analysis data relating to quality, wages, productivity, grievances, absenteeism accidents, etc. Undertaking attitude surveys and adopting appropriate techniques to improve employee morale. All these functions have to be integrated into the organizational process.

2. EMPLOYEE RELATIONS 2.1 INTRODUCTION

People in organisations interact with each other during work, formally and officially as well as socially and informally. During the course of interaction, relationships develop, which are invisible connecting links, coloured by emotions of love, hate, repulsion, respect, fear, anxiety and so on. These are usually mutual but not necessarily reciprocal. If A hates B, it does not follow that B hates A. It is possible that B loves and sympathizes with thoughts of A. Relationships imply feelings for each other. They may be positive (friendly, wanting to be close) or negative (unfriendly, wanting to be distant). Relationships always exist between interacting persons. There is no neutral point. Indifference is not neutral. Indifference tends to be negative. 9

Relationships influence behaviours at work. Expectations of each other, perceptions of the intentions of either, distributions of assignments, readiness to conform or to rebel, enthusiasm to contribute, etc., are to some extent outcomes of these relationships. Attitudes and motivations influence, and are influenced by, the nature of these relationships. Employees are among an organization's most important audiences with the potential to be its most effective ambassadors.

Employee Relations are practices or initiatives for ensuring that Employees are happy and are productive. Employee Relations offers assistance in a variety of ways including employee recognition, policy development and interpretation, and all types of problem solving and dispute resolution.

Once there was a time when "Employee Relations" meant labor relations everywhere around the world. Negotiate. Orchestrate. Dictate. HR professionals helped negotiate collective bargaining agreements. The provisions of that contract defined the relationship between management, unions, and workers.

Today, Employee Relations is a much broader concept. It involves maintaining a work environment that satisfies the needs of individual employees and management. Improving employee morale, building company culture, conveying expectations

2.2 OVERVIEW

An effective employee relation involves creating and cultivating a motivated and productive workforce. People are generally motivated from within, but what can you do to help foster the type of environment where employees thrive, enabling your company to outperform the competition

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Employee Relations starts with determining the type of workplace the company wants. It starts by considering what the company wants its employees to say about working for the company. In a competitive market, it is important to that employees dont feel that they might be treated more fairly elsewhere. After all retention is one of the major functions of HRM. By considering what the company wants employees to say about working for it gives shape to the companys culture. The company culture conveys organization's core values to its employees, customers, vendors, and community. In addition to the workplace climate, the company also considers the types of processes or systems it wants to employ within the workplace to support the company culture and enhance the working relationship that exists between the company and its workforce. Such systems could include communications, policies, training, and development. Also, an essential step in building effective Employee Relations is to evaluate the human, financial and other resources available that reinforce the values and guiding principles the company wants echoed throughout the organization. For example, what type of supervisors and managers does it believe can bring out the best in people and projects? The company should also make certain from the start that employees are not in counter productive work environments where work is more arduous than it needs to be. Is the workplace compliant with employment law? A major source of frustration for employees is the feeling that they were treated unfairly. Good liability management tools are necessary to ensure that the company avoids unnecessary confrontations, time wasters and costly legal battles

Traditionally Employee Relations programs were centered around labor union relations. Today, Employee Relations does not necessarily involve unions. However, it does involve cultivating the leadership style and workplace practices that help make union organizing activities a less attractive option for employees. Establishing workplace and management principles set the stage for fostering a successful work climate and establishing your company's culture. Effective Employee Relations is about establishing processes that address and nurture that culture.

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Employees in such organisations develop attitudes very different from those in another organisation that does not make any such distinction and is more secular in its policies. These different attitudes will be reflected in their behaviours outside the organisation and will either strengthen or weaken the social fabric. An organisation in which authority is highly centralised and does not allow its people enough discretion, will develop among its people tendencies for dependency and inability to take responsibility. These tendencies are handicaps in their roles as parents or citizens. The extent of concern shown for the effect of working conditions on employees health has an impact on the society, not merely in terms of general health and costs on medical care, but also in terms of the kind of activities that the members of the society participate in.

When an organisation is sensitive to its impact on society, and responds to the societys concerns, it is said to be socially responsive. On the contrary, if it is concerned only with its own purposes and ignores the impact that it has on society, it is said to be socially not responsive Relationships also contribute to stress and conflicts at work, which in turn, affect quality of work life of individuals as well as the quality of organizational outputs, measured in terms of customer satisfaction, competitive advantage, innovation, and so on.

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3. EMPLOYEE RELATIONS IN BRIEF

According to me, Employee Relations can be classified in 3 types, with HRM intervening. First is the downward communication flowing from employer to the employees Second is upward flowing from employees to employer and Third is horizontal communication amongst the employees.

3.1 Downward communication (employer to employees) 3.1.1. Training and Induction Every new employee needs a company orientation, but most supervisors forget that employees also need to be orientated to the company's VISION in addition to learning their coworkers' names, company policies, history, philosophy, procedure and rules. The company's vision statement tells the employee where the company is going, what their role will be, and how success and achievement will be measured. Achieving great performance in the company is a journey, not a destination. For any business to succeed one must first recognize that the people are the greatest asset, and service is your most valuable product. Continuous improvement by training and developing employees is critical for business survival.

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Recent U.S. workforce demographics provided by the Bureau of Labor Statistics make a compelling case for businesses of all sizes to begin planning for ongoing training of employees. Experts project that 60% of new jobs in the early 21st century will require skills possessed by only 20% of todays workforce. Technology is raising the skill level requirements for the best and fastest growing jobs, but schools and adult learning programs are not keeping pace. The likely result is that demand for highly skilled workers will outstrip the supply of qualified workers in the coming years. These statistics would seem to move training and employee development to the list of services in high demand. 3.1.2 Benefits Benefits often have a higher impact on employee recruitment and retention than compensation. Employees who know their needs are met are also more likely to contribute to a positive morale. Besides the customary Allowance like For Workers

Attendance bonus, Over Time Allowance which is double the Basic, House Rent Allowance, Education Allowance, Conveyance Allowance which is fixed as per 6 scales of the workers, and Leave Travel Allowance amongst others. For Staff

Basic, Attendance Bonus, Production Incentive, House Rent Allowance, Education, Leave Travel Allowance, and Annual Bonus amongst others. Companies also provide Monetary Benefits to the workforce like Sodexho Meal Vouchers, medical reimbursement

3.1.3

Safety Health and safety risks may arise from physically dangerous work, such as work with

hazardous machinery or relate to less immediately visible factors such as exposure to pollution.

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Accidents and ill health may ruin or seriously impair the lives of employees and their dependents

3.1.4

Career Development and job opportunities Career Paths determine the optimum movement and utilization of people in the

organisation. Therefore, due care should be given to various elements of the position including job analysis and the competency requirements at each stage.

3.1.5

Stress management and Recreation facilities Working Hours and Holidays need to reflect an adequate balance of the quality of work life

of all employees. It is recognized that for certain categories of employees business related work may transcend the routine office timings; whilst for other categories business may be purely confined to the work hours and timings. The quotation all work and no play can make jack a dull boy is apt for the company to understand the importance of recreation facilities.

3.1.6

Collective problem solving It is the duty of the HR to find ways of resolving issues between employees on one hand

and employees and Management on the other. As long as there are human beings at the work place there would always be need for arbitration amongst them.

It is at this time that HR should use the "grape vine channel" to its advantage and call officers to a round table for reconciliation and if it is between workers and Management should ways of brokering peace. Although the trade unions are expected to only deal with matters concerning workers, it can be argued that everything that happens within a company, including product development and business strategies, affect workers one way or other and trade unions have gradually sought to extend their areas of concerns. The managements attempts to contest such expansions on the ground of management prerogative have by and large not succeeded.

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These activities involve a number of skills crucial to human resource managers. HR specialists are also involved in issues which are considerably legislated and touch on home life and health as well as more familiar workplace topics such as discipline and conflict.

3.1.7

Involvement and Engagement Participation of employees has been a subject of discussion since the 1930s when Elton

Mayos experiments led to the development of the human relations school. Participation can be and has been provided in the structure of the organisations. Participative management involves associating employees at every level in the decision making process. Participation may be at the board level, collective bargaining, job enlargement, job enrichment, suggestion schemes, quality circles, and empowered teams. Participative management is also called Employee involvement. The Industrial Disputes Act provided for participation in the management of the shop floor. Representatives of the workers would be appointed to various committees to decide upon matters affecting the worker at the shop floor. The rationale behind the concept of involving workers in bodies that decide on matters concerning them is that the principle of democracy

The lesson is that the advantages from the practice of participation cannot be derived from creating appropriate structures alone. The nature of the processes within the structures, are important. At the basic level, calling for suggestions is participation. In terms of Hertzbergs motivation-hygiene theory, participation in decision making is a powerful motivator, because in that process, there is recognition and achievement, a sense of being wanted, of being important. Employees may also reduce turnover and absences when they begin to feel that working conditions are satisfactory and that they are becoming more successful in their jobs. They identify themselves with the work and this leads to an improved performance.

3.1.8

Rewards and Recognition

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The purpose of an employee recognition and reward program is to express the employers appreciation for a job well done. Employee recognition and rewards can take many forms, from a simple thank you note to cash to an extravagant awards ceremony, just to name a few.

Generally, recognition and rewards can be distinguished in two categories. At all these companies, recognition is distinguished as a pat on the back or a word of praise, growth prospects and competent supervision amongst others. Alternative monetary rewards include incentives, bonuses, and commissions. In addition, employees put a great value on benefits such as life insurance, disability insurance, health and/or retirement benefits, and perks. Top performing companies have begun documenting "best practices" which show a direct relationship between employee morale and productivity, profitability, turnover and retention, thus measuring the value of human resources.

3.2 Upward relation (employee to employer) 3.2.1 Feedback It is the job of the supervisor to guide the employee into understanding which of their ideas for change will be helpful in meeting the company's goals. A good supervisor also guides each of their employees differently because similar to Pokmon, each employee offers unique talents and will evolve into different forms of advanced employees 3.2.2 PERFORMANCE APPRAISAL Most managers say they want to pay for performance, but few sit down and conduct a performance review with an employee. Raises, Career paths, training plans, and departmental productivity are impacted by an employees performance.

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In addition, a well-designed, effectively implemented appraisal system can provide solid documentation of performance accomplishments or problems that the supervisor can use to justify or defend a wide range of personnel actions or decisions.

3.3 Horizontal Relation (amongst Employees) 3.3.1 Annual events and magazines

Annual events are a way of getting to know the employee on a personal level. It is also a team building exercise and is common in all companies In-house magazines too are common. They tell the employee about the company and employee participation is encouraged by articles.

3.3.2 Welfare activities The objective of providing welfare facilities is to ensure that employee attention is not diverted from work to maintenance activities. It also aims to provide a caring environment that enhances the satisfaction of the employee with working conditions

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4 ADVANTAGES OF MAINTAINING GOOD EMPLOYEE RELATIONS. The Gallup Organization published research proved that a more engaged employee is also a more productive employee. The research also proved, that a more engaged employee is also a more profitable employee, a more customer-focused employee, a safer employee, and an employee who is more likely to withstand temptations to jump ship and in turn it is also true that the longer employees stay with an organization, the less engaged they become. Following are the advantages of maintaining good relations with the employees.

1. Reduced Absenteeism One reason, outside of illness, that employees are absent is stress, and the number one reason employees are stressed has to do with their relationship with their manager/supervisor. Management styles that are too authoritarian tend to promote high levels of absenteeism among employees also increase turnover, job burnout, and employee health problems such as backaches and headaches. Employees may also reduce turnover and absences when they begin to feel that working conditions are satisfactory and that they are becoming more successful in their jobs Absenteeism rate at GPI is around 13-14 % on an average but a little high during summer holidays. Absenteeism at TAJ is under control as per the norms.

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The absenteeism rate at PARLE is 8 % and increases by 3 % reaching to 11 % during the summer holidays. In addition, these programs help reduce turnover thereby reducing your training, recruiting, and administrative human resource expenses.

2. Improved Morale & Motivation. The secret of creating a motivating employee review lies in the relationship between expectations of the employee & the C&B. The right combination provides with a highly motivated employee. Maintaining good Employee Relations creates an environment of trust and increases morale. This improves the motivation of the employee. A motivated employee is contagious and is beneficial for the growth of the company

3. Harmony in the organisation Increase in the level of job satisfaction has a direct relation with the smooth workflow. There will be lesser arguments and more discussions. Employees will be ready to share information and help each other out. A good relation with the employee also inculcates discipline. Thus harmony is maintained. 4. Lesser attrition - reduced cost on training, less cost of retention A reduced attrition rate will reduce the cost of training and induction. No new employees will need to start afresh. The company can save on getting to know new employees. GPI spends around Rs.5 Lakhs on training every year with the attrition rate being less than 2 %. For TAJ, There is a bloodbath in Mumbai today, with seven hotels cheek-by-jowl near the airport. Retention of talent is the chief challenge. Staff is routinely poached by not just industry competitors but also banks, call centers and others. On the upside, they are the biggest and the most profitable chain and apparently enjoy an attrition rate which is lowest in the industry.

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At PARLE, it seems the employees are not interested in leaving at all. The attrition rate is a minimal at 2-3% for staff, and between 1-2% for its workers.

5. Attract good talent Attracting the most qualified employees and matching them to the jobs for which they are best suited is important for the success of any organization. A good company with good Employee Relations will be talked about. There is a brand image created in the mind of the employees which attracts them to the company like a drop of honey. Like for example there are companies like TATA, HLL, Birlas, or Infosys where people would be glad to work. TAJ wants to create an image where, if 10 employees are interviewed and 1 gets selected, then the rest should feel sorry, not for being unemployed but for losing a wonderful opportunity to work for TAJ Knowledge about satisfying work places with comfortable working conditions and friendly work culture and transparency in the organisation are always passed through the grapevine and thus attract employees. Later its the job of the recruitment cell to hire employees as per the requirements.

6. Responsible for increase in productivity. As the saying goes, a happy worker is a productive worker. Thus a satisfied worker will take lesser breaks, spend lesser time in the canteen gossiping and more time working for the company. There will be Greater commitment which means quality output. There will be loyalty and less wastage of company resources. The employee will seek for opportunities for intensifying the business and look out for new chances of expanding the company. They identify themselves with the work and this leads to an improved performance. Finally, the act of participation in itself establishes better communication, as people mutually discuss work problems.

7. Open to organizational / hierarchical changes (flexibility)

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The workers self-esteem, job satisfaction, and cooperative with the management are improved. The results often are reduced conflict and stress, more commitment to goals, and better acceptance of a change.

8. Shared learning and Continuous improvement. A satisfied employee will look for ways of continuous improvement. They will participate in programs such as kaizen and try for the better of the company. Employees in a good employee relation management will share their new learnings and wisdom with his colleagues.

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5. ROLE AND SCOPE OF HUMAN RESOURCES The key process that defines the HR strategy is ensuring an effective and efficient organisation through appropriate people-job-organisation fit Each and every HR plans thus focuses on: Productivity Performance Satisfaction, to further the business objectives of the organisation through the optimal utilization of the human resources.

6. GODFREY PHILLIPS INDIA LTD. (ANDHERI) Vision To be the best quality cigarette manufacturing in the country, producing at optimum cost with total employee involvement and maintaining clean and safe environment inside and outside the factory premises.

INTRODUCTION GPI, the second largest player in the Indian cigarette industry with an annual turnover of over US$ 265 million is a joint venture between Modi group and global cigarette major Phillip Morris.

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Some of the leading brands in GPIs portfolio are Jaisalmer, Cavenders, Four Square, Red & White and Originals. The company has a value market share of 11.4% and a volume share of 12.4% in the cigarette industry in 2004-2005. Godfrey Phillips has the strong backing of over 15,000 shareholders in the Country. The manufacturing of cigarettes is done in the Andheri factory in Mumbai and in Guldhar (Ghaziabad) called the ITC factory (International Tobacco Company). These constitute the manufacturing operations of the CIGARETTE DIVISION in the company.

Core values Core Values are those values, which are enduring tenets of the organisation and are timeless guiding principles. Core values help the organisation to achieve its vision. Core values are those values, which are not compromised, even though they become a competitive disadvantage under certain situations. The Andheri Factory, has articulated the following Core Values. Provide Environment For Development Urge to change for Improvement Focus on Quality.

The Andheri Management Team with its commitment to achieve excellence in Quality shall ensure compliance to this policy and economic competitiveness in the implementation.

Nothing represents the true spirit of Godfrey Phillips more aptly than the many initiatives it has taken to be a socially responsible corporate citizen. The commitment has always been to enrich and energize the community within which it operates. Red and White Bravery Awards

Started in 1990-91, the purpose of these awards is to instill in people the culture of selfless action. The awards bring into limelight extraordinary, yet little known acts of bravery and social acts of courage by the common man.

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Farmer Program

Godfrey Phillips helped create awareness amongst the farming community about the benefits of adopting approved agricultural practices. It imparts training and knowledge to farmers in tobacco producing areas AIDS Prevention Program

GPIs participates in AIDS Prevention Programme, rehabilitation of the Gujarat Earthquake victims and Blood donation camps. However, since charity starts at home, they insist upon and ensure safe environmental practices within our factories and offices

Realizing the importance of human factor in producing good quantity and quality, GPI signed an agreement with Japan Tobacco Company (an acknowledged world leader in the management of people and machines) for the improvement of its Andheri factory. The Andheri plant went 100% filter manufacturing in 1991. The modernization of the primary line at a cost of RS.11 Crore's was done in 1990-91.

ORGANIZATION STRUCTURE GPI believes in a flexible, business-oriented organisation structure. It follows a flat organisation structure with decentralized management. There are around 5 levels in the organisation structure making it a decently flat structure comprising of 407 employees comprising of 69 staff members, 289 workers and 47 managers. The organizational business is built around a structure that comprises various jobs carried out by individual in the organisation

Role and scope of HR at GPI Mission To facilitate the processes which create an environment where each member of GPI family is able to contribute their best.

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Aim: To be amongst top 10 employers in India.

All HR processes are linked to Core Competency Model which was launched for GPI, 2003.

Assessment Centers are launched for promoting staff into management cadre. HRIS (Human Resource Information System) launched to empower employees of Godfrey Phillips.

Six-Sigma project is undertaken to create a robust performance management system. Annual training calendar is introduced which is based on the GPI competency model. Internal Recruitment is encouraged to fill vacant positions. Each management staff is entitled to training and development intervention of at least 8 days.

360-degree feedback is initiated. Variable income plan was launched in 2004 to attract the organization to raise their performance bar.

GPI believes in Total Employee Involvement. This is done through small group activity including all employees in teams, whereby identified problems are resolved and presented to management. The HR department is the central point which initiates, monitors and follows up on the processes. It coordinates the task force activities of the factory. There are at present 11 task forces in the factory There is a micro site that has been created called ELIVE to generate the awareness among the employees about the concept and its benefits. Each manager should therefore evolve his or her people strategy aligned to the business strategy of the organisation

DOWNWARD RELATION

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TRAINING AND INDUCTION An employee at GPI is placed on the job after induction. The basic induction training is a seven-day program; additional training is imparted as required. Technical personnel are given induction training in various technical departments for one month before being placed on their actual jobs. GPI at its HO follows a mentoring program for the employees. It will be implemented at the Andheri factory from July 2005. Training for the same will be conducted by the HO. Mentoring at GPI was launched on the 5th September, 2004 which is celebrated as the International Mentoring Day world wide. GPI believes that the best investment that it can make towards its people is in increasing their knowledge, skills etc. This can be done by periodically identifying the training needs, imparting training and measuring the effectiveness of the training programs thereby assessing how effective the training programs are and their contribution to the bottom line of the business. GPI places a great emphasis on training Training and Development systems focus on aspects such as continuous learning, on-thejob learning, easy access to training programs, self-managed programs. Training is controlled and monitored through a budget of around Rs. 5 Lakhs A Training Directory is created by each unit. The Directory identifies both training needs as well as training delivery in respect of all employees. The training programs include both job related technical training as well as behavioral training. Training needs of employees are decided once in a year. The factory manager identifies training needs of HODs. In line with the Training Activities in the Factory, Quality System Procedures of Personnel Department are documented, scope of which includes Training Need Identification, Training Plan, Training Calendar, Training Evaluation and Training Records.

GPI provides the following BENEFITS:

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Canteen Facility - The Company has a subsidized canteen for its employees, which provides food at highly subsidized rates in all shifts. The employees working in the night shift get refreshments. Everyday in the morning, the food is tasted by the responsible person from the Personnel Department and accordingly the taste is approved or is changed if necessary. Every week, the menu is approved by the Personnel Department. Lunch is made available at 50 paisa, refreshments for 20 paisa and tea for 10 p

Uniform - The Company provides free uniforms to certain categories of employees once in every year around the month of Feb-March. The washing of the uniforms is taken care of by the company once a week. Winter and monsoon wear is also provided to selected employees.

Housing facility is provided to the security guards and workers at key position. They are highly subsidized accommodation at a pay of Rs. 7.50 per month.

Holiday Home Scheme - Each individual management staff is entitled to a stay up to one week at any of the properties available during the course of a calendar year

Marriage Gift Scheme - The Company provides a gift to all its managers on the occasion of the wedding of the employees as well as their children. On all such occasions the employees shall have the option to purchase a gift of their choice at a value not exceeding an amount of Rs.5000/- per wedding

Monetary benefits GPI employees can avail Retirement Services/benefits GPI has a credit society which provides the following benefits. It was established in 1953 and membership is open to all employees working in the various establishments of GPI. It is registered under the Societies Registration Act. Its meetings are held once a month. It offers 2 savings schemes to its members Cumulative Deposit Scheme Monthly Contributory Deposit Scheme.

A member can also avail of loan schemes immediately on acquiring membership in the credit society. 28

Short term loans - for a period of 1 year, monthly installments, which are deducted from the member's salary

Long term loans: for a period of 5 years and is recovered through 60 monthly installments deducted from the salary.

MEDICAL FACILITY. In GPI, there are two panels of doctors. The company has 50 trained first-aiders which are required if any accident takes place. Every department has a first aid kit which is replenished and audited every month. The Personnel Department includes a Nurse and an Ambulance room who maintains a medical kit as well. The company carries out medical examination of all the employees once in every three years.

SAFETY GPI believes that companies are responsible for ensuring the health and safety of the employees. Every employee follows operating procedures and practices are designed to protect people and equipment from risk of injury or damage to property. GPI has a Safety Department which aims To create at all levels in the organisation a Safety Consciousness and to develop and maintain safety at work place. HR department has to see to it that an acceptable safety standard is kept in the workplacesafety gears are provided, Fire extinguishers are placed at the right places, multiple entrances and exits are provided and possible fire/safety drills are conducted once in a while. The safety squad conducts a safety drill in the first week of March on safety day and once in two months. GPI also pursues ERP which is run by the emergency squad. The EMERGENCY RESPONSE PLAN is responsible to deal with various types of emergencies that could occur at the facility with the response organization structure being deployed in the shortest time possible during an emergency. Thus when an emergency occurs, the initial indication is by raising the alarm by the person who first notices a problem. The respective Managers is immediately notified who then assesses 29

the severity of the condition, classifies it appropriately and directs the response actions of the facility personnel to mitigate the condition. Upon analyzing the emergency situation, if situation is beyond his control he informs the Security Main Gate who activates the ERP. GPI also has a Medical Attendant (Nurse) who during an emergency is to provide first-aid to victims of the accident, and to ensure their prompt transportation to a treatment installation such as a hospital, when required the Medical Function is responsible for the establishment of a first-aid station for the immediate treatment of possible victims, which shall be appropriately equipped with medical supplies, oxygen, resuscitators, and other supplies and the emergency response personnel are familiar with first aid administration There hasnt been a case of sexual harassment or drug abuse. GPI is short of a policy against it, but any individual found guilty will not be allowed on the premises and will be dismissed if it continues.

CAREER DEVELOPMENT OPPORTUNITIES The emphasis at GPI will be to focus on career paths rather than on career per se. GPI focuses on generic career paths as well as specific career paths for identified individual. There are 8 basic Job Bands. All grades are structured around these levels. Jobs are placed in appropriate bands, corresponding to the responsibility levels. Job bands are used for specific HR action such as promotions, career development etc. GPI recognizes that in a dynamic, fast-changing environment jobs will also be flexible Job Rotation Programs (JRP) can not only reduce turnover but they also increase learning, and provide added bench strength. At GPI, the technicians are rotated in the whole department. This helps the technicians become Almighty operators. Knowing a variety of jobs improves the workers self-image, provides personal growth and makes the worker more valuable to the organization. It also helps them become a trainer and fill the vacant places if some employee turns out absent. Job rotation is a way to overcome boredom and monotony. Periodic job changing can also improve interdepartmental co-operation, employees become more understanding of each others problems.

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Job enrichment too is used at GPI. It seeks to improve both task efficiency and human satisfaction by building into peoples jobs, quite specifically, greater scope for personal achievement and recognition, more challenging and responsible work, and more opportunity for individual advancement and growth. Operators become Technicians who then become supervisors who in turn become managers

RECREATION AND STRESS The employees at GPI work for 8 hours with a lunch break for half an hour. The leaves allotted are different for workers and different for staff. For Workers: Workers receive Annual leave of 21 days, Casual leave of 14 days & Sick leave of 21 days. FOR STAFF: The staff members are entitled to get Annual leave of 30 days, Casual leave of 14 days & Sick leave of 20 days. GPI proudly holds interdepartmental cricket matches annually. Steps are taken by each department to send their best players and employee participation is encouraged to the fullest Various stress management programs are held by external faculty for the welfare of the employees

COLLECTIVE BARGAINING The trade union at GPI is KAMGAR UTKARSH SABHA is registered under commissioner of labor and recognized under All India Trade Union Congress. Employee Relations as an activity extends through negotiation and bargaining, discipline and employee involvement. When GPI is concerned, there hasnt been a strike ever. All are part of this union for the past 15 years. The procedure for grievance solving at GPI is followed as per hierarchy, the employee goes to the department head and the grievance is presented. If the department head is not in the

31

condition to solve the grievance, the personnel department is informed. If the employee is still not satisfied, the grievance is then forwarded to the FM.

INVOLVEMENT AND ENGAGEMENT GPI follows the technique of Quality Circle, originating from Japan and introduced in many establishments in India. In this, employees voluntarily become members of quality circles, which study various situations and problems at the work place, suggest and implement solutions. There is thus much involvement of the worker, in what happens at his work place. The participation is not of representatives. All of them could get involved.

GPI follows a Suggestions scheme called Kaizen Teian. Employee can give suggestion in the field of Operation, Safety, Quality, Workplace Environment, Waste Elimination ,5 S, Energy Saving ,Cost Saving. There are department committees consisting of Dept Head, Dept Level Managers and Supervisors, who motivate employees and evaluate the suggestions and reward the employees. The factory committee meets once in a fortnight. It is involved in planning and implementing for increasing the participation and number of suggestions of the employees. It also reviews the reward at regular intervals.

GPI (as per rules of KT) has star, super star and pole star. Star is felicitated with a silver medal of approximately Rs.225. Super star is awarded with 30 Gms of silver medal of approximately Rs.450. The pole star who must have 3 implemented Kaizens per month for 6 continuous months is awarded with Sodexho coupons worth Rs.350. At GPI, mostly the department heads go at the employees workplace and congratulate them and gift them their reward. Best suggestion of the month and kaizenee of the month are recognised by displaying their photo at the canteen and at main gate entrance. And also gets a free lunch with family in a restaurant. The company has a tradition of felicitating those employees who have completed 20 years of service with the company by offering them a gift and a certificate.

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UPWARD COMMUNICATION FEEDBACK GPI has started taking an EMPLOYEE SATISFACTION SURVEY annually from the last two years. It is conducted, monitored and evaluated by the HR department.

PERFORMANCE APPRAISAL At GPI, managers have an online Performance Appraisal. For the staff, an informal procedure is followed, the employees are monitored regularly by their immediate boss and regular feedback is given to the employees as and when required. This forms the basis for identification of training needs with respect to HOD's and management staff.

HORIZONTAL RELATION ANNUAL EVENTS GPI holds the following: Picnics GPI has a four squares club which carries out picnics and other excursions for the staff to nearby places like Khopoli and Virar. Dassehra Puja - The workers organize Dassehra Puja every year with the aid of contributions collected from the employees of the company. Every department celebrates this auspicious day by carrying out pujas in their respective departments. The company distributes sweets to all the employees. House Magazine - GPI publishes a quarterly house magazine known as SAMVAD; highlighting the various events at GPI. It was started in the year 1986.This helps to encourage people for active participation in writing pros, poems, drawings. The magazine also gives information about the Kaizens given by the employees and the Kaizenee. The promotional 33

activities, suggestions regarding Safety, Pollution Control are also included in the house magazine. The achievements of the employees and their family members are published in the magazine WELFARE ACTIVITIES GPI gives the welfare facilities as mentioned in THE FACTORIES ACT, 1948. Various incentives, cash benefits, rewards for good performance etc. are offered at GPI as a part of the commitment towards the well being of employees. In addition to these, the company has initiated several other programmes to achieve the goal of employee welfare. The Godfrey Phillips Employees' Welfare Society: It was constituted and registered under the Mumbai Trusts' Act, 1950 in 1971. The membership of the society is open to the employees of GPI. A few of the programmes organized by the society are listed below: Annual Prize Distribution: This programme is organized every year. The employees children who excel in academics are awarded so as to encourage them to perform better. In addition to the prizes, each awarded also gets a Textbook Gift Coupon. Note Book Distribution: Every year, before the beginning of the academic session the employees of GPI are given notebooks at concessional rates. Each employee can purchase a maximum of 4 dozen-note books from the welfare society. S.S.C. Vyakhyanamala: An expert hired by the society gives the children of employees appearing for the S.S.C. exhaustive guidance in all the aspects of these exams. If the number is inadequate, the society sends them to counseling agencies at its own expense. Career Counseling: Children of employees in the 9th and 10th standards and Jr. College are given guidance as to which career they should choose based on the results of a 5 hour test administered to them by the Maharashtra Vyavsaya Margdarshan Kendra.

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The society has several other activities in the pipeline such as a talk on the Union Budget, a rangoli competition, establishment of Adarsh Kamgar Puraskar, a pulse polio vaccination scheme etc. 7. INTRODUCTION TO PARLE VISION With the unfolding of the InfoTech age, and the emergence of a borderless world, we have a quest to become the most admired group to all our stakeholders, alike customers, employees, contract manufacturers, wholesalers, C&F agents, suppliers and society. Our customer being the king we will try to exceed their expectations by pursuing world class standards in our people, products, process & performance encouraging innovation & nurturing intellectual capital. We will follow ethical & fair business practices maintaining respect for all the fellow human beings.

INTRODUCTION Mr. Mohanlal Dalal came to Mumbai in the 1880s from pardi village. He did some work here and there to earn his living. Soon PARLE biscuits were formed in a 60 ft long and 40 ft wide tin shed with an initial investment of 1,50,000 with the help of 12 men. In the year 1929 the market was dominated by famous international brands that were imported freely. Despite the odds and unequal competition, this company called PARLE Products, survived and succeeded, by adhering to high quality and improvising from time to time. Over the years, PARLE has grown to become a multi-million US Dollar company. Many of the PARLE products - biscuits or confectionaries, are market leaders in their category and have won acclaim at the Monde Selection, since 1971. Today, PARLE enjoys a 40% share of the total biscuit market and a 15% share of the total confectionary market, in India.

ORGANISATION STRUCTURE

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PARLE on the other hand has an organisation structure of 7-8 levels. Starting with the Factory Manager and then the Deputy Manager, but it is more on paper than for operational purpose. It has a total of 742 workers, 30 staff members and 150 managers and officers. Role and scope of HR at PARLE The HR mission at PARLE is to develop the employee behaviour, identify their training needs and help them grow in the future. They dont have a HR Department per se, but the personnel department handles the functions of the HR. Their Personnel department handles 742 workers, 30 staff members and 150 managers and officers. Though no special steps are taken to increase employee involvement at PARLE, they have had no disputes and work goes on smoothly because of the team spirit in the e employees. The Personnel department handles all the activities amongst the employees and believes that no disputes and smooth flow of work is a live testimony of credibility to HR department.

DOWNWARD COMMUNICATION TRAINING AND INDUCTION At PARLE, the nature of recruitment is purely internal. Thus training needs may be more as compared to hiring trained individuals. Here, the department Heads identify the training needs as and when required. These training needs are then sent to the Personnel department. The Personnel department checks its external brochures and the training is conducted There is internal training for the workers for KAIZEN, 5S, and other Japanese systems which are recently implemented by the company. External training is not given for workers unless critical or really required. The staff and the managers are given external training for behaviour and management. There is follow-up done after the training with the help of feedback forms. These feedbacks are submitted to the Personnel department who looks after them and implements the changes if possible. There is religious feedback taken after training and the form is evaluated by the Personnel department.

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PARLE doesnt have an induction program for its workers in place. Workers are recruited and put on job, whereas the managers and staff have to go through a 15 day induction program. The employees learn about the functioning of each department.

PARLE has the following BENEFITS Apart from the regular allowances, PARLE provides Production Incentive and festival allowance. Canteen facility - It too has subsidized food for all its employees. Lunch is for Rs. 2 and tea and refreshments are served at 20p. The canteen is run by contractors. Housing facility - PARLE doesnt provide housing facilities to its employees but a few important ones like the technicians and engineers stay on the compound of the factory. Uniforms Like in GPI, the workers wear uniforms, some also receive monsoon wear and winter wear. The uniforms are washed on a weekly basis on contract.

PARLE also gives various MONETARY BENEFITS. It has an ECS (employee credit society) which offers loans short term and long term loans like GPI.

MEDICAL BENEFITS There are 2 in-house doctors who conduct free medical check ups on half yearly basis at PARLE. There is a well equipped ambulance room with 3 full time nurses. Employees at PARLE also receive reimbursement of medical expenses. Compensation is also given on death of the employee

SAFTEY PARLE endeavors to adequately train all employees, suitably equip them and instruct them to perform their duties in a safe and effective way. PARLE trains all its employees against safety 37

and first aid and Fire fighting. Apart from this there is a Guard for all the machines who prevents the accident from occurring. PARLE is a non tobacco zone. Thus there is no smoking allowed in the premises or the working area. They are also strict about alcohol or drugs. Though there is no policy, but an employee is not allowed to enter the gates if he is drunk or is caught with drugs. There has never been a case of sexual harassment either. PARLE also conducts safety day competitions on safety week during March. Colourful posters and illustrations of the harms of not wearing a helmet and other such warnings are pinned on the entire lobby and the passage area all over PARLE.

CAREER DEVELOPMENT PARLE doesnt follow Job rotation, thus an employee does gains specialization. PARLE believes Moving from one job to another also gets irritating because the normal routine of an employee is disturbed and also time is wasted in adjusting to the new job.

PARLE too believes that enriched job will have more responsibility and autonomy (vertical enrichment), more variety of tasks (horizontal enrichment), and more growth opportunities. Thus after receiving considerable knowledge at packing, a worker is soon promoted to charge-hand.

RECREATION AND STRESS Employees at PARLE receive an annual leave of 16 days, sick leave of 10 days and CL of 7 days. The management decides the paid holidays after discussion with the Union and the list of holidays is posted on the notice board. In all, there are 14 paid holidays. Although there have been talks about health clubs and gyms. Employees at PARLE receive an annual leave of 16 days, sick leave of 10 days and CL of 7 days. And refreshment breaks of 15 minutes at PARLE. They are sanctified with a play ground. They have regular tournaments of volley ball, cricket and tennis. Employees also have the facility to play carromen, table tennis in their rest

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rooms. There is an annual sports day held by the ECS where employees are encouraged to participate.

COLLECTIVE BARGAINING The trade union at GPI & PARLE is the same; KAMGAR UTKARSHA SABHA. There has been a strike at PARLE due to conflict of interest which lasted for 40 days, in the year 2000. The procedure for grievance solving at PARLE goes as per hierarchy too, first the employee goes to the department head and the grievance is presented. If the department head is not in the condition to solve the grievance, the personnel department is informed. If the employee is still not satisfied, the grievance is then forwarded to the FM. The grievance is further sent for conciliation.

INVOLVEMEMNT AND ENGAGEMENT PARLE has a suggestion box which comes under the plant services manager. These suggestions are received on a weekly basis. PARLE like GPI follows the technique of Quality Circle, originating from Japan and introduced in many establishments in India. In this, employees voluntarily become members of quality circles, which study various situations and problems at the work place, suggest and implement solutions. There is thus much involvement of the worker, in what happens at his work place. PARLE has also implemented KAIZEN recently. Here, employees are expected to submit at least 6 suggestions per month. If the suggestion is creative and implemented, the employee earns 2 points. These 2 points entitle him to a gift. There is a considerable rise in the self-esteem. This helps in terms of interpersonal relationships which directly affect Employee Relations. Finally, the act of participation in itself establishes better communication, as people mutually discuss work problems. Rewards at PARLE are as per KAIZEN. No other rewards or gifts are given to the workers for making suggestions.

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There is a Best worker of the month who is called as the PARLE G anmol. His picture is displayed on the notice board and he receives a small gift too. The bottom line is to increase employee productivity which contributes to making a company more profitable.

UPWARD RELATION FEEDBACK PARLE doesnt follow job satisfaction survey or any other kind of feedback for its workers or staff

PERFORMANCE APPRAISAL PARLE doesnt hold any performance appraisals for its workers, though the management and staff follows a 90 degree performance appraisals system.

HORIZONTAL RELATION ANNUAL EVENTS PARLE holds the following functions for the employees PARLE does not hold picnics for its employees. PARLE has a Sports day arranged by the ECS annually. It has activities like football and volley ball and cricket. PARLE too has an in-house magazine called the PARLE PARIVAR. Like GPI, it has information on the employees. It is a form of suggestion box wherein the employees write about their grievances and suggestions.

WELFARE ACTIVITIES PARLE conducts the following welfare activities.

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At PARLE, One special initiative that takes place is that all the employees are wished on their birthday and receive a birthday card personally signed by the factory manager.

PARLE provides biscuits worth of Rs. 30 to the employees every month. PARLE has a crche facility for the employees complying to the law as there are more than 30 women workers ordinarily employed

Jagruti group has 12 members and is formed for a month to make employees aware of health, hygiene and safety.

8. INTRODUCTION TO TAJ LANDS END (BANDRA) Vision To lead and become an international benchmark in the hospitality industry in India and key regions of the world. To dazzle and delight the customer with the best quality of hotel products, F&B experience and above all exceptional service standards.

The TATA group is Indias best known conglomerate in the private sector with long known for its adherence to business ethics. As much an institution as it is a business conglomerate, the Tata Group is unique in more ways than one. Established by Jamsetji Tata in the second half of the 19th century, the Group has grown into one of India's biggest and most respected business organisations. TAJ hotels, resorts and palaces are today recognised as Indias largest and finest global hotel chains. Incorporated by the founder of the Tata group, Mr. Jamsetji Nusserwanji Tata, the company opened its first hotel, The TAJ MAHAL hotel, in 1903 and has been making new benchmarks ever since. The TAJ, a symbol of Indian hospitality, has won international acclaims for its quality hotels and its excellence in business facilities, services, using and interiors.

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Barely a year after its acquisition TAJ LANDS END, Mumbai has been unanimously voted as the Best Business Hotel in Asia from India for the year 2003.

Core Values TAJ follows the 5 core values which are followed worldwide by the TATA group. The Tata Group has always sought to be a value-driven organisation. These values continue to direct the Group's growth and businesses. The five core Tata values underpinning the way they do business are: Integrity: We must conduct our business fairly, with honesty and transparency. Everything we do must stand the test of public scrutiny. Understanding: We must be caring, show respect, compassion and humanity for our colleagues and customers around the world, and always work for the benefit of India. Excellence: We must constantly strive to achieve the highest possible standards in our day-today work and in the quality of the goods and services we provide. Unity: We must work cohesively with our colleagues across the Group and with our customers and partners around the world, building strong relationships based on tolerance, understanding and mutual cooperation. Responsibility: We must continue to be responsible, sensitive to the countries, communities and environments in which we work, always ensuring that what comes from the people goes back to the people many times over.

The key theme of corporate social responsibility at TAJ is to build livelihoods with a clear focus on women, craftsmen and artisans and education of children. Employees of all hotels and the corporate office contribute and actively participate in numerous on-going projects and events. The core competencies of the hospitality business have been utilised to make these themes truly relevant and meaningful. The Tata Group's relationship with its employees has changed from the patriarchal to the practical, but this is a bond that continues to be nourished with compassion and care

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As any 'Tata person' will tell you, there's something positively distinctive, something less than completely explainable, about working for the group the experience is cast in a hue quite different from the ordinary. This view continues to hold despite the changes that have altered the way the Tata's interact with their people, moving from the paternalistic philosophy of yore to bring the group in line with ever-evolving human-resource methodologies. The Tatas pioneered a slew of employee benefits that would later be mandated through legislation in India and elsewhere in the world. The eight-hour working day, free medical aid, welfare departments, grievance cells, leave with pay, provident fund, accident compensation, training institutes, maternity benefits, bonus and gratuity all of these and more were introduced by the group before any legal rules were framed on them. To give but one example of how far ahead of the times the Tatas were, while its first provident fund scheme was started in 1920, the government regulation on this issue came into force in 1952. Employee perception also plays an important role. After all, they make the experience happen. Says Zeller: "At the TAJ it is regular to see seniors guiding the younger employees; it is a part of our culture. It is this kind of commitment and loyalty of its people that makes the TAJ so unique and special." The employees are also put through rigorous training sessions to cope with the changing times, and this is a continuous activity.

ORGANIZATION STRUCTURE

TAJ being in the hospitality sector has a very rigid structure comprising of more than 20 levels. It follows a centralized management with everyone reporting to their department heads and follows a strong hierarchy. TAJ has a total of 967 employees filling up the 20 levels.

Role and scope of HR at TAJ The HR mission at TAJ is To see all the employees enjoy working and to design a proper career growth structure for all the employees

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The HR office at TAJ is transparent and open for the employees whenever they have a grievance. HR is a strategic business asset. The employee is the HR departments customer. And TAJ links employees satisfaction to customers satisfaction. The hospitality industry, as any other service industry, is all about people. Customer orientation is the driver of our system. The direct link to the consumer is the employee. Thus communication with the employee becomes important. So the focus is not only on the right people, but also on the right attitude, the right attitude is far more important than just skills. Functions of TAJ LANDS END are monitored by the corporate office. Any hindrance or setback is pointed and effective steps are taken. TAJ believes that the HR department plays a very important role in functioning of the hotel. It plays a crucial element in issues such as personality development, competency mapping of the employee. We know that the employee is a direct link between the guest and the management. Thus it becomes like a chain to keep the employee satisfied to see that the guest is satisfied.

DOWNWARD COMMUNICATION TRAINING AND INDUCTION TAJ doesnt have a training calendar. The average educational level of all the employees is HSC and Diploma in Hotel management. So there isnt much training required. But training is imparted to the employees as and when required. Grooming and internal training pertaining to the department is given to the employee. For instance, voice modulation training is given to the telephones department and the reservation department. The managers and HODs also receive behavioral training like stress management. The training programmes across the group aspire to inculcate a work ethos that is global, professional and warm. Their leadership programmes and other corporate training progammes undertake potential assessment and training. At centers of excellence, heads of departments are trained so they can go forth and train their staff. There are foundation modules and accreditation programmes that an employee is put through to attain the TAJ standards. It is called the Art of Hospitality training which takes place in the first year of joining. All employees have to compulsorily go through this training to learn about the culture and values of TAJ. The 44

management training programmes conducted by dedicated group institutions are devised to help employees give expression to their talent. Like most hotels, TAJ also has Cross exposure training, here some selected employees are required to work at various properties of TAJ to gain knowledge and learn different practices. It happens annually for 2-3 months.

BENEFITS TAJ supplies the following benefits. Canteen facility - Employees at TAJ also receive subsidized food at Rs. 250 for the month. Rs. 250 is monthly deducted from the pay-check. It includes buffet lunch with breakfast and refreshments. Food is prepared at TAJ by their hired employees. The menu changes every month and is approved by the HR department. There is a Co operative store which provides ration at lower rates. Uniforms mostly all employees from the chef to the managers have their personal uniforms. Washing and ironing is done on alternate days for the employees. Transport all employees can avail the transport bus of TAJ. It has specific schedules as per the shifts but employees are charged a minimal amount for it.

MONETARY BENEFITS TAJ also has a credit society in the HARMONY group. It is like a small in-house bank, there are short term and long term schemes for bank. There are various loan facilities for the employees at reduced rates.

MEDICAL BENEFITS TAJ has an in-house doctor who is present in normal working hours. The doctor is also available on call during crisis. The security department has a well equipped ambulance room in

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case of emergencies. Employees here receive medical reimbursements and though not now, but there are plans of insuring them against any accident on the premises of TAJ.

SAFETY Regular first aid and safety training is given to the employees of TAJ. TAJ has smoke detectors and fire alarms on every floor. They have a well equipped safety department. Apart from this, there is a first aid box and a fire extinguisher in each department. The security manager handles the safety department. In case of an emergency, the security department handles and co ordinates the situation. At TAJ, there hasnt been a case for sexual harassment or any drug or alcohol abuse. But a severe offence like this would get the employee terminated. TAJ is very strict regarding the safety of its employees. TAJ has several emergency exits for the guests and employees located strategically on every floor.

CAREER DEVELOPMENT Job rotation implies movement of employees from one job to another. With job rotation, a given employee performs different jobs, but more or less of the same nature. TAJ follows this. TAJ believes that it gives the employee a sense of confidence and encouragement. When an activity is no longer challenging, the employee would be rotated to another job at the same level that has similar skill requirements.

RECREATION AND STRESS TAJ grants a total of 30 leaves. TAJ also has multi-functional Gym and health club open for the employees. Employees have to pay a minimal amount to avail the facility of the gym. At TAJ, there is a staggering break structure. The lunch time is 12 - 14-30. Employees can visit the canteen anytime but since the reception and telephones have to hurry back to office and send other people of the department, most of the employees stay back only for 15-20 minutes. There is a facility of tea and coffee making in every department for refreshments. 46

TAJ also has annual events for the employees. TAJ not only does events annually like cricket tournaments but has events and team building exercises as a part of monthly schedule. There are guests and VIPs who constantly keep visiting, so functions become a routine. There are loads of events held on Valentines Day or Holi which turn out to be a stress buster for the employees.

COLLECTIVE BARGAINING There is no trade union at TAJ. At TAJ, there is a grievance box where employees can drop their grievances. This grievance box is handled by Mr. Jamal. Minor grievances that can be solved in the department call for unit meetings. Here the employee informs everyone that they need to discuss some issue and a meeting is held in the department itself. TAJ also has regular town hall meetings, which are held quarterly for the employees. Here employees can place their problems and grievances in front of the forum and solutions are sought.

INVOLVEMENT AND ENGAGAEMENT The TAJ GROUP OF HOTELS has just won the prestigious Hermes Award 2002 in the human resources category, and the prize is for the 'special thanks and recognition system' (STARS), a programme so innovative and successful that it has been patented. It aims to recognize and reward excellence in the services provided to guests. The STARS is a reward system for doing something good. The programme allows employees to win points (at the recommendation of a colleague or a guest). This gives them access to different levels of standing that go hand-in-hand with specific rewards. In addition, employees are strongly encouraged to make suggestions and recommend innovations that may be applied to the group as a whole. Regardless of the structural mechanisms, managers find it worthwhile to bring their subordinates into the decision making process. The benefits are seen to arise from the fact that there is knowledge and thinking ability at lower levels, which can make useful inputs into the process. At TAJ, to ensure participation from employees, proper information is distributed to all. Employees know it as a norm that their participation is respected and the participation makes them 47

aware of the rationale behind the decision, as well the details of what the decision is aimed to achieve, so that doubts during implementation are resolved with much less confusion.

Rewards at TAJ are given as per STARS. Accumulation of points enables an employee to pin a star on his lapel. Still more points gets him into exclusive clubs that can fetch him gift vouchers, cash prizes and holidays in a TAJ hotel of his choice. Best employee of the month is displayed at the entrance lobby. Employees who have achieved something in their personal life like winning a tennis championship also get the opportunity to get their picture taken with the general manager and this picture is published in their house magazine.

UPWARD RELATION FEEDBACK TAJ is the first company in the Tata Group to undertake the HR balanced scorecard, which links individual performance with company strategy. In addition, the employee satisfaction tracking system tackles an employees problem areas and levels of gratification on a quarterly basis. TAJ too follows an employee satisfaction survey on a yearly basis. They have an external group (Gallup) that surveys and results are presented to the HR department and to the General and Resident manager. They also have a grievance box that is handled by directly by Mr. Jamal (the General Manager)

PERFORMANCE APPRAISAL Performance appraisals are conducted religiously at TAJ. Managing performance effectively involves clearly communicating expectations to employees. Once expectations have been set, one must let them know how they are doing and guide them toward ways they can improve their performance. It also involves making yourself accessible and open to receiving feedback from employees.

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HORIZONTAL RELATION ANNUAL EVENTS TAJ holds the following functions for the employees. It too has regular annual picnics Since its a hospitality industry and they cant afford to have a TAJ party with all the departments, there are departmental parties on quarterly basis or as and when time permits. All employees are involved in departmental parties along with the HODs TAJ has its regular monthly magazine which informs of the upcoming events. It has articles by the employees and their unusual learning at a training program. The last page gas a column called know your employees which informs every one of top managers and their policies for improvement. TAJ has an annual party. It is more like TAJs birthday with balloons and games for the employees.

WELFARE At TAJ, there is a HARMONY program for employee welfare. A representative of the HR department is always present in the meetings held by HARMONY. It was started in June 2003 by Mr. Raut. HARMONY has 5 committees namely CAF looks after issues regarding canteen and lunch and refreshments. COMMUNITY looks for issues regarding helping the poor and the needy. They have regular visits to the unprivileged areas to teach and educate them ENTERTAINMENT this committee looks after the feasts and festivals arranged by the hotel.

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SPORTS the annual sports day and regular sports events like volley ball, cricket are arranged by the sports committee.

CREDIT the credit committee looks after the schemes and loans made available by TAJ.

TAJ also has other schemes for its employees such as Discounts on cakes employees at TAJ receive 25-50% off on cakes and other products of TAJ. TAJ employees acquire special discounts on Party halls and Banquets for their functions and gathering TAJ has various corporates like AIRTEL and some banks which provide TAJ employees with special offers and discounts. TAJ employees also get passes or entry coupons for the functions held by TAJ.

A COMPARITIVE STUDY

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Parameters/compa ny ORGANISATION STRUCTURE NO. OF WORKERS

GPI Flat 289 workers 69 staff 47 managers

PARLE Flat 742 workers 30 staff 150 managers 15 days only for managers and staff. Annual Managers and workers Technical for workers, behavioural for managers External for managers and internal for workers.

TAJ Tall 967

INDUCTION TRAINING

7 days & compulsory for all Systematic and annual. For mangers, staff & workers. Technical and behavioural Internal and external

14 days & compulsory for all Done as need occurs. Managers only Behavioural Cross department training. Internal and external.

BENEFITS

Canteen

Yes, with subsidized food.

Yes, with subsidized food.

Yes, with subsidized food.

Uniform

Selected employees, also monsoon & winter wear For Security guards at subsidized rates

Selected employees, also monsoon & winter wear

For everyone.

Housing

Other

Holiday hone scheme and Marriage gift scheme.

For engineers and Technicians in the compound.

For selected employees like Front office manager.

Production incentive and festival allowance.

Transport for employees and coop store

MONETARY BENEFITS

Retirement services and benefits Credit society.

ECS employee credit society 51 3 in-house doctors

Credit group in Harmony group.

MEDICAL

2 in house

1 in-house doctor.

7. WORLDWIDE EMPLOYEE RELATIONS 1 UK The British were once notorious for industrial disputes and walkouts. In fact, they were daily occurrences in the 1960s and 1970s, such that industrial relations were perceived as a 'problem' which brought down governments. Weak management and intransigent unions produced industrial chaos, manifested by low productivity, hostility towards change and highly publicized disputes, fundamentally weakening the UK as an economic power. The reputation of British personnel managers was not enhanced during this period. When HRM came on the scene in the 1980s, personnel management had become bogged down in a form of industrial relations characterized by 'firefighting' - undermining any claim to being strategic or proactive (Hendry, 1995:12). The situation changed dramatically during the 1980s and 1990s. Recessions, New Right politics, restrictive legislation on industrial action and massive restructuring in many organizations considerably reduced the power and role of unions. The Employment Relations Act (1999) revised trade union recognition and a number of other rights. Since the signing of the Treaty of Rome in 1958 there have been several attempts to develop community-wide initiatives on employee participation and corporate industrial relations. Progress in harmonizing this area has been slow but there has been a considerable convergence of employment conditions. The Government embarked on a 12-week consultation on long hours working and the operation of the individual opt out in the UK. The Government believes that the statutory recognition procedure should be a fall back, only turned to when voluntary efforts have been tried, but have failed to reach agreement. It therefore does not consider the issues covered for collective bargaining under the statutory procedure should exceed those typically covered by

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voluntary collective bargaining recognitions. For this reason, the statutory procedure does not currently cover training and pensions. The 1998 Workplace Employment Relations Survey (WERS) showed that whereas 36% of employee representatives said they were consulted over training, only 7% said they negotiated over it. UK has a statutory law for every aspect of Employee Relations. One thing that USA lacks is security of the job. The pink slip system which is very prevalent is a cause of concern for the employee. Employees have the right to join or not join a trade union of their choice. Their employer may not dismiss them, select them for redundancy or make them suffer detriment for being or proposing to become a union member, nor for taking part in the union's activities at an appropriate time. They are similarly protected if they choose not to belong to a union or refuse to join one. Dismissals which infringe these rights may be taken to an employment tribunal regardless of the employee's length of service. Employees who claim to have been unfairly dismissed in this way (except those complaining of unfair selection for redundancy) can also apply to the tribunal for an order of interim relief (which requires the employer to continue their contract of employment or to re-employ them pending the final outcome of the case). An employee may not be dismissed, selected for redundancy (when others in similar circumstances are not selected) or subjected to any detrimental action for taking certain types of action on health and safety grounds. These rights apply to all employees, regardless of their length of service Workers are entitled to be accompanied at certain disciplinary and grievance hearings by a fellow worker or a trade union official of their choice, provided they make a reasonable request to be accompanied. They also have the right to a reasonable postponement of the hearing, within specified limits, if their chosen companion is unavailable at the time the employer proposes. Workers have the right to take paid time off during working hours to accompany fellow workers employed by the same employer. These rights apply to workers including agency workers and home workers, though not to those who are in business solely on their own account.

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Complaints to an employment tribunal must normally be made within 3 months of the date of the infringement of the right. Exceptions to this general rule are detailed in the documents about the particular individual rights.

JAPAN Japanese Employee Relations methods have relevance in two contexts: Japan itself and

transplant factories in the Pacific area, North America and Europe. Nissan, for example, has been particularly active in overseas expansion and - in common with many other Japanese corporations has a specific attitude towards trade unions. Effectively, independent unions and multiple union representations are resisted in favour of 'staff association' and tame single-union representation More intensive efforts are being made to unify and realign industrial labor unions at Japan. The nation's labor union organizations are three-layered - consisting of the independent unions at the lowest level (enterprise unions are the mainstream), industry-level organizations and national centers. The enterprise union remains the basic unit for organization. There are more than 100 industry-level labor organizations, five have over 500,000 members. Many of these organizations do not satisfactorily function as industry-level bodies. They are unable to adequately survey their members, to formulate industrial policy or to unionize the labor force. Many are understaffed and inadequately financed. Following the end of World War II there was a long period when four national centers competed. They were particularly divided ideologically and in terms of their support for political parties. One result was the creation of competing organizations within the same industry. However, with the formation of Rengo (Japanese Trade Union Confederation) in 1989, a move was made to unify and to realign union organizations at the industry level under the umbrella of one national center. In 1993, the Japan Institute of Labour (JIL) began a research project on industrial relations and decisions on working conditions at companies without labor unions (Head: Prof. Tsuyoshi Tsuru of Hitotsubashi University). According to the report, More than 60 percent of companies without unions have an inhouse employee organization, of which 80 percent have a "fraternity-type" organization, and fewer

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than 20 percent have an organization in which "employees have a say." The organization in which "employees have a say" means those who replied that they have "labor talks with management on revision of wages and matters pertaining to such working conditions as working hours, holidays and vacation and welfare provisions" or "labor discusses production plans and management policy." As for an individual voicing body, a high of 47 percent of companies without unions adopt a self-appraisal system, followed by the proposal system (34.2%) and a round table discussion by those responsible for personnel management (26.1%). Even among companies without unions, 42.2 percent stress employees' participation in decisions on working conditions, and 44.7 percent stress their participation in formulation of strategies, thus showing an emphasis on employees' overall participation in both areas. This, it seems, is the background for introducing a variety of inhouse organizations where employees can have a say, the report analyzes. The Japanese employment system has often been referred to as a "lifetime employment" system. Firms compete with each other every spring to recruit the best of the new university and high school graduates as regular employees normally determined as much by the prestige attached to their university or school as by academic record. Regular employees enter the firm with the expectation that they will be kept on until they reach the mandatory retirement age of 60. The traditional Japanese wage system was based on seniority. However, in recent years, Japanese companies increasingly have shifted towards a wage system that is linked to performance because of increasing global competition and need to further motivate their workers. Participation in the Worker's Compensation Insurance System is mandatory for all firms in industry and commerce. All medical expenses are paid for injured workers. Japan has a universal health insurance system, under which all citizens can receive medical attention if they become ill or injured. Businesses with at least five workers must provide their employees and their families with government-managed health insurance or comprehensive insurance obtained from a health insurance association. As of March 1999, 37.6 million workers participated in governmentmanaged plans, while 32.6 million had comprehensive insurance. Collective bargaining is practiced widely in Japan. In the private sector, most aspects of labor management relations are determined through collective bargaining. However, issues affecting management and production, such as new plant and equipment and subcontracting 55

usually are resolved through regular consultations between the unions and management. Government workers have limited collective bargaining rights. The Government determines the pay of public sector employees based on a recommendation by the independent National Personnel Authority (NPA). The NPA recommendation is based on wage surveys. Standards are set by the MHLW and issued after consultation with the Standing Committee on Safety and Health of the Central Labor Standards Council. Japan has a total of 343 Labor Standards Inspection Offices, whose staff carry out safety inspections and accident investigations and provide judicial punishment for serious violations of the law. As for recreation is concerned, Overtime accounted for 9.8 working hours per month in the year 2000. In addition, Japanese workers utilized roughly half of the paid holidays and vacation days to which they were entitled. The Government of Japan has set a goal to shorten the number of working hours to 1,800 per annum by 2009. To attain its target, the Government is attempting to make Japanese businesses adhere to the 40-hour workweek, is encouraging workers to use their vacation days, and is trying to reduce the number of overtime hours.

USA Labour unions date back to the late 18th century in the USA, although it was not until the

late 19th century that the 'modern' labour movement was born. Unions were organised primarily at the level of the workplace, and it was at this level or the employer level that their main activities took place, with unions seeking to 'take wages out of competition' and hence maximize membership gains by co-coordinating settlements across workplaces and employers. Despite these relatively conservative goals, unions were initially able to gain employer recognition and engage in meaningful collective bargaining only where their members had skill levels sufficient to effectively shut-down an employer without fear of being replaced. The abundant supply of qualified college graduates and experienced workers should create keen competition for jobs. Overall employment of human resources, training, and labor relations managers and specialists is expected to grow faster than the average for all occupations through

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2012. In addition to openings due to growth, many job openings will arise from the need to replace workers who transfer to other occupations or leave the labor force. Legislation and court rulings setting standards in various areasoccupational safety and health, equal employment opportunity, wages, health, pensions, and family leave, among others will increase demand for human resources, training, and labor relations experts. Rising healthcare costs should continue to spur demand for specialists to develop creative compensation and benefits packages that firms can offer prospective employees. Employment of labor relations staff, including arbitrators and mediators, should grow as firms become more involved in labor relations, and attempt to resolve potentially costly labor-management disputes out of court. Additional job growth may stem from increasing demand for specialists in international human resources management and human resources information systems.

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11. PERSONAL OBSERVATIONS

Sponsorships of MBAs or engineering programmes are successful retention tools. There are a couple of popular models. Managers can take short on-campus courses. Some companies pay for courses with the rider that managers return to the company once the course is over. For instance, Coke has started an internal cadre-building programme that promotes the executive (graduates and technical trainees) cadre to the management cadre through a two-month course in XLRI.

It has also started the Pegasus programme where high-fliers interact with the CEO at an off-site location. Cadbury and HLL have also ramped up the process of identifying HIPOs in their respective companies. IT companies are re-training managers in new software, which is working as an important retention tool.

Prominent banks, IT companies, BPOs and FMCG companies in Bangalore, Mumbai and Delhi share the angst of their employees in a different way. They are on the donors lists of many prestigious schools, which reserve some seats for them. Since donations are unaffordable for most employees, this becomes a huge add-on for them. A few MNCs also provide children scholarships to some prestigious foreign universities.

Some companies are even altering work schedules. Pepsi has told its employees in the north to pack up at 6.30 every Wednesday. According to Sanjay Luthra, director of Mumbai-based BPO 3 Global Services, We also try and build a very creative work environment with a multicuisine canteen, which is converted into a discotheque once a week. It has an array of recreational facilities including a video game parlour, and library.

Gaurav Lahiri, head of Indian operations in HR consultancy Hay Group, says, The key to talent management is to identify top executives and treat them differently. Cross functional training is a must for such employees. Plus, the strategy is to create such a dominant work culture that

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employees find it difficult to adjust in some other organisation. ICICI is one such company which follows this strategy.

When Kumar Mangalam is concerned, any BIRLA story is about people. He just cant take his mind off people issues; this is one CEO who looks at himself and his group through peoplefocused glasses, there are a select few CEOs who act as enablers in the business, by identifying the leaders in individual businesses and set goals, giving freedom through explicit decision making rights and a set of values and principles based on which decisions are to be made. Explains Maira (HR - Executive), Its about moving from being tacit to being explicit My objective has been to build a meritocracy and there are lots of nuances about it, says Birla and adds You are not talking about an object, an organisation is about people who make it and it would continue to be my focus in days to come. Getting the right people on board was a priority, and Birla was willing to do everything to grab them. Internally it raised eyebrows, not because scores of senior managers working for the group for decades had been asked to put in their papers, but because a company which had never invested much on HR was suddenly spending Rs 16-17 crore on management development programmes which would later be called Gyanodaya. For Birla, people issues continue to attract maximum attention. One of the most important functions he has cornered for himself is a regular performance appraisal for people who directly report to him. Senior employees confide that its something he spends hours on. Being the employer of choice is an objective thats dear to his heart, but Birla feels that theres still way to go on this front. On his short list of immediate priorities, the one that is most prominent is, We need to spend much more time grooming our brightest stars.

It seems simple. However, balancing employee expectations with those of the company is easier said than done. Employee Relations in my view is an ongoing activity. It starts from the day the employee is recruited, with the training, induction process, and goals and norms that are expected out of the employee. Explaining the vision and core values of the company so that the goals for the future are set straight.

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In the site greatplacetowork.com, there seems to be one common factor in all 100 companies which got them to this reputation. The universal cause was that all of them cherished and nurtured their human resource. Wegmans Food Markets (#1 on 2005 "100 Best" list, Supermarket Chain) Robert Wegman, says "No matter how much we invest in our employees, they give us more in return."

As per Maslows theory of motivation, the first three needs are already met by our parents and guardians. The monetary needs, social needs of communication, and are physiological needs are fulfilled by our parents, society or friends. The fourth need to be recognized and rewarded, this is where the employer comes in. The desire to be renowned by the employer is the prime motivating factor. Motivation then initiates a cycle of development for the employee. The employer achieves this by engaging the employee decision making and other activities.

12. CONCLUSION

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Each company that I interviewed was from different sector and had a different modus operandi. From a plant factory to the hospitality sector a very important tool of Employee Relations is communication. It plays a crucial role in Employee Relations. It is important to motivate the employee and make him aware of the policies.

Employee Relations is necessary in an organisation as salt to food. As one cant imagine eating food without salt, a company cannot run without maintaining Employee Relations.

I noticed that internal recruitment plays a very important role in employee relations. Internal recruitment is when the company recruits someone from within the organisation to fill the vacancies, as opposed to external recruiting i.e. recruiting from the open market. Internal recruitment helps with the industrial relations since external recruitment can be seen as depriving the workforce of opportunity. TAJ has mixed recruitment. It follows internal as well as external. TAJ has a Database of People who want to seek employment. It is prepared on the basis of resumes left by job-seekers. PARLE is strong follower of Natural succession. It strongly believes in internal recruitment. If the company is looking at improving Employee Relations, then internal resources should be the first considerations when planning for recruitment.

Also OCB is known for promoting employee relations. OCB is individual helping behaviors and gestures that are organizationally beneficial, but are not formally required. A recent focus of organization behaviour and management theory explains that this behaviour is called organization citizenship, or the "good soldier syndrome" and, although the definition of organization citizenship is debated, most definitions of being a "good soldier" include pro-social behaviours, helping others, innovating, volunteering and the lack of undesirable behaviour. Also, assisting newcomers to the organization, not abusing the rights of co-workers, not taking extra breaks, attending elective company meetings, and enduring minor impositions that occur when working with others are examples of OCB that help in coping with various organizational uncertainties. 61

Podsakoff, MacKenzie, Moorman, & Fetter have identified OCB facets such as conscientiousness, sportsmanship, civic virtue, courtesy, and altruism Research on OCB has benefited greatly from Organs (1988) conceptualization of OCB as consisting of five distinct factors: Altruism (e.g. helping behaviours directed at specific individuals), Conscientiousness (e.g. going beyond minimally required levels of attendance), Sportsmanship (e.g. tolerating the inevitable inconveniences of work without complaining), Courtesy (e.g. informing others to prevent the occurrence of work-related problems), and Civic Virtue (e.g. participating and being concerned about the life of the company.)

According to me, It is a like a cycle. Organization Employee relations Advantages performed by Employees

Benefits to

OCB (conscientiousness, sportsmanship, civic virtue, courtesy, and altruism)

This is a very effective means as many qualified people can be reached at a very low cost to the company. The other advantages are that the employees would bring only those referrals that they feel would be able to fit in the organization based on their own experience. The organization can be assured of the reliability and the character of the referrals. In this way, the organization can also fulfill social obligations and create goodwill.

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